The New Deal and Reform

The New Deal and Reform

1933-1940

The First Hundred Days

• The Civilian Conservation Corps (CCC)-unemployed single males between the ages of 17-28 put to work building roads, planting trees, helping soil erosion and flood-control projects-about 3m men worked in the CCC

• Emergency Relief-Federal Emergency Relief Act (FERA)-$250m in direct aid to the unemployed-furnish food and clothing-$1 federal to $3 state

• <CCC in Michigan-overall-200m trees replanted

The First Hundred Days

• Civil Works Administration (CWA)-aid to people in need through local authorities-

• within 2 months 4m are working for the Federal Government

• pay minimal, some unnecessary, but men were working

• <Harry Hopkins-headed both the FERA and CWA

• Harry Hopkins Cartoons

• Pictures of the New Deal

Farming in the New Deal

• They agree to limit production• federal government would pay farmers

cash to reduce their crop-money would come on a tax on processors(people who made crop into something)

• Agricultural Adjustment Act-set up the Agricultural Adjustment Administration(AAA)-led by Henry Wallace Secretary of Agriculture

• pay certain amount for field left unseeded-paid cotton growers $200m to plow under 10 m acres

• paid hog farmers to slaughter 6m swine• not without criticism-destroy food, cruelty,

tax passed on to consumers• succeeded in its goals• <Henry Wallace

The Tennessee Valley Authority-TVA

• Government had built hydroelectric plants on the Tennessee River near Muscle Schoals, Alabama-to make nitrate for explosives

• Congress debated on what to do with them after WWI

• private companies wanted to buy it-George Norris(Senator) from Nebraska wanted Federal Government to conserve

• first governmental regional project• TVA is formed-more farms,

electrification, recreational lakes• one of the most successful programs of

the New Deal• <Nitrate Plant at Muscle Schoals

Congress Regulates Finance

• Economy Act-lower pay of federal employees, reduced payments to veterans

• Home Owners Loan Corporation(HOLC)-government loans to avoid foreclosure

• Glass-Steagall-Federal Deposit Insurance Corp. (FDIC)-protect bank deposits up to $5000(now $100,000)

• National Industrial Recovery Act(NIRA)-one of the most controversial-created the National Recovery Act<(NRA)-public works projects, codes for fair industrial practices-limit production

• included price controls, limit of 40 hours, minimum wage-30-40 cents/hour, child labor abolished

Pump Priming

• Public Works Administration (PWA)-government would spend money to create jobs

• projects that took many workers and a lot of material

• under Harold Ickes-Secretary of the Interior

• projects include-Triborough Bridge, causeway to connect Florida to Key West, port at Brownsville Texas, hospitals, 50 military airports, 2 aircraft carriers

• <Some feelings on the New Deal

Reforming the System

• Relief and reform in the first hundred days did not help the economy as much as hoped

• The Second New Deal-

• Works Progress Administration (WPA)-Harry Hopkins

• employed >8m-built airports, roads and streets, libraries, schools and hospitals, garments

• work for unemployed actors, writers, artists, musicians

• some problems with jobs for voting Democratic and 20% going to the arts

Reforming the System

• Social Security-1935-system of social insurance-pension system for workers an their spouses

• death benefits and support for surviving children ‘til the age of 18 are included

• payroll tax 1/2 by workers, 1/2 by employer

• joint federal and state unemployment insurance

• effected the lives of more people than any other New Deal Legislation

Reforms in Business

• The Security and Exchange Commission-(SEC)-1934-prevent insider trading

• in charge-<Joseph P. Kennedy

• Utility Companies-Public Utilities Holding Company Act-promote efficient use of electricity and savings-if not private company dissolved

• The Revenue Tax of 1935-tax the rich

• The Banking Act of 1935-replaced board with 7 member board of

governors for 14 years-

• power to raise or lower money supply, raise or lower interest rates, cost of borrowing money

The Attacks on the New Deal

• Liberals criticized for not doing enough to correct the evils of Capitalism-Conservatives felt FDR leading us to Socialism

• complain to Congressmen-suits are brought• elimination of New Deal legislation by the

Supreme Court• Solomon Poultry Corporation V. United

States- “sick chicken case”• Brooklyn-sold an unfit chicken to a butcher• can’t regulate state of New York trade• NIRA unconstitutional-1. Legislative

power to the Executive Branch, 2. Some of the codes covered intra-state commerce

• <Supreme Court in 1937

Attacks on the New Deal

• Result: Congress passes the Wagner Act (National Labor Relations Act)-Labor provisions are gone with NIRA

• business friendly NIRA is replaced with labor friendly Wagner Act in collective bargaining

• Wagner Act-1. Employers have to bargain w/ workers 2. Can’t threaten workers, fire union members, interfere w/ union organizing efforts

• set up National Labor Relation Board

• Replace NIRA with-Fair Labor Standards Act-National minimum wage-25 cents then 40cents an hour-44 hour work week then 40 in 2 years-under 16 could not work

Attacks on the New Deal

• AAA declared unconstitutional-

• United States v. Butler-(1936)-processing tax is not a tax-but regulation of farmers

• beyond the power of Congress

• 1938-2nd Agricultural Adjustment Act-declared unconstitutional as well

• Liberty League-New Deal endangering Constitution and establishes a dictatorship

• all classes were invited to join-but mainly rich

Extremists

• Dr. Francis Townsend-devised a plan that paid everyone over 60, $200/month, must spend in 30 days-paid by 2%tax on business transactions-defeated but starts Social Security movement

• <Father Coughlin-Catholic priest-Detroit-10m people listen to him on the radio-

• turned sermons from religion to political and social issues

• forms-National Union for Social Justice-nationalize banks, public utilities, natural resources

• strongly anti-Semitic, Church makes him stop broadcasting

• Audio Clip from Father Coughlin

Extremists

• <Huey Long- “Kingfish”-most able and potentially dangerous of the extremists

• wild clothes startled people-but a great speaker-elected Governor of Louisiana-built the Sugar Bowl, free textbooks for public school children

• then elected Senator-built political machine with an eye on the Presidency

• 1934 introduces national social program called share the wealth- “Every Man a King”

• $5000 annual income for every family in US

• raised by taking wealth from rich

• shot to death at the height of popularity

Election of 1936 and beyond

• Republican platform-”all is in peril…, join in defense of American Institutions.”

• Alfred Landon is Rep. And Frank Knox

• Roosevelt and Garner Renominated- “Are you better off than you were four years ago?”

• landslide

Court Packing Plan

• Roosevelt wants to reorganize the federal judiciary

• more judges were needed to keep up with the case load

• too many judges aged or infirm• proposed-judges retire within 6 months of 70th

birthday• if they do not-then President has the power to

appoint additional judges• aimed at Supreme Court-6 justices are 70 or

older• believed they were too conservative for the

New Deal and hadn’t gotten to appoint any yet• never got through Congress• court shifted to his favor and in 5-4 decisions

kept Social Security, National Labor Relations Act

Other Changes during New Deal

• Labor Unions Grow-the Committee for Industrial Organization (CIO)- used sit-down strikes

• Minorities-African-Americans-officially, relief in the New Deal was color blind-CIO included blacks, many New Deal Agencies included Blacks, CCC, WPA,

• Washington DC still Jim Crow-Marian Anderson concert refused because of color

• Eleanor Roosevelt resigned publicly from the Daughters of the American Revolution and organized the concert on the steps of the Lincoln Memorial

• Marian Anderson singing

More Changes

• American Indians-1924-win full citizenship-John Collier appointed Commissioner of Indian Affairs-helped with Indian Reorganization Act 1934

• Mexican Americans-most often worked on farms-less protected-Dust Bowl sends thousands to California-no jobs

• migrant workers who had no permanent address could not work in the CCC or WPA-but helped some

• <Native Americans in 1938

Family Life and Entertainment

• Middle class was not on relief with 2 adults and 2 children

• father works outside home-mother homemaker

• fewer are getting married, fewer are being born

• radio is main entertainment-85% own radios-serials in the afternoon- “The Guiding Light”, The Romance of Helen Trent, Ma Perkins

• adventures in the afternoon-Little Orphan Annie, The Green Hornet, The Lone Ranger

• evening dramas and variety-• names include-<Bob Hope, Orson Welles,

Eddie Cantor, Jack Benny, George Burns, Gracie Allen

Family Life and Entertainment

• Movies-Greta Garbo, Clark Gable, Fred Astaire, Ginger Rogers, Marlene Dietrich, Loretta Young-mostly bigger than life production to forget about the Depression

• Big Bands-<Benny Goodman- “The King of Swing”-Glenn Miller

• Women-most popular movie stars,

• Amelia Earhart-first female trans-Atlantic flight in 1928-

Family Life and Entertainment

• 1937-Earhart disappears over the Pacific

• 1932-Olympics-<Mildred ‘Babe’ Didrickson-2 gold and 1 silver in track and field

• Dorothea Lange-Black women for photography